FHFA Reports U.S. Home Prices Slightly Increased in Q2, 2010

Residential News » Residential Real Estate Edition | By Michael Gerrity | August 25, 2010 1:39 PM ET

According to the Federal Housing Finance Agency's (FHFA) seasonally adjusted purchase-only house price index (HPI), U.S. house prices rose in the second quarter of 2010.

The HPI, which is calculated by using home sales price information from Fannie Mae- and Freddie Mac-acquired mortgages, was 0.9 percent higher on a seasonally adjusted basis in the second quarter than in the first quarter of 2010. The unadjusted national increase was 2.6 percent. Over the past year, seasonally adjusted prices fell 1.6 percent from the second quarter of 2009 to the second quarter of 2010.

FHFA's seasonally adjusted monthly index for June was down 0.3 percent from its May value, offsetting some of the price increases in the prior months. The monthly increase for the April-to-May period was revised downward to 0.4 percent, from an initial estimate of 0.5 percent.

While the national, purchase-only house price index fell 1.6 percent from the second quarter of 2009 to the second quarter of 2010, prices of other goods and services rose 3.0 percent over the same period. Accordingly, the inflation-adjusted price of homes fell approximately 4.4 percent over the latest year.

FHFA's all-transactions house price index, which includes data from mortgages used for both home purchases and refinancings, fell over the latest quarter. The index declined 0.5 percent in the latest quarter and 4.9 percent over the four-quarter period.

Significant FHFA Findings:

  • Of the nine Census Divisions, the East North Central and New England Divisions experienced the most significant price movements in the latest quarter according to the seasonally adjusted, purchase-only index. While prices rose 1.6 percent in the East North Central Division, prices fell 0.7 percent in the New England Division.
  • Seasonally adjusted, purchase-only indexes indicate that prices rose in the latest quarter in 27 states. Prices rose over the latest four quarters in 10 states and Washington, D.C.
  • As measured with purchase-only indexes for the 25 most populated metropolitan areas in the U.S., four-quarter price declines were greatest in the Phoenix-Mesa-Glendale, AZ area. That area saw price declines of 5.5 percent between the second quarters of 2009 and 2010. Prices held up best in the Oakland-Fremont-Hayward, CA (MSAD) area, where prices rose 9.9 percent over that period.


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